WOOLWORTHS LIMITED
A.B.N 88 000 014 675
16 April 2008
The Manager, Companies
Australian Stock Exchange Limited
Company Announcements Office
Level 4
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
RE:
Woolworths Limited – Listing Rule 3.1
Please find following the Third Quarter Sales Results for the thirteen week
period ended 30 March 2008.
For and on behalf of
WOOLWORTHS LIMITED
PETER J HORTON
COMPANY SECRETARY
1 Woolworths Way, Bella Vista, NSW 2153 PO Box 8000, Baulkham Hills, NSW 2153 Australia
Telephone (02) 8885 0000 Facsimile (02) 8888 0001
16 April 2008
PRESS RELEASE
THIRD QUARTER SALES RESULTS
13 WEEKS TO 30 MARCH 2008
THIRD QUARTER SALES UP 10.2% FROM CONTINUING OPERATIONS
Proforma(1)
Increase
(%)
2007
Statutory
13 weeks
2007
Proforma(1)
13 weeks
2008
Statutory
13 weeks
Third Quarter by Division ($millions)
Australian Food and Liquor
New Zealand Supermarkets
Petrol
Supermarket Division
BIG W
Consumer Electronics – Aust / NZ
Consumer Electronics – India
Consumer Electronics – Total
General Merchandise Division
Hotels
Continuing Operations
Wholesale Division
6,981
1,022
1,175
9,178
777
305
8
313
1,090
252
10,520
39
7,023
1,023
1,161
9,207
796
297
8
305
1,101
250
10,558
39
7,627
1,065
1,407
10,099
879
330
26
356
1,235
263
11,597
42
9.3
4.2
19.7
10.0
13.1
8.2
225.0
13.7
13.3
4.4
10.2
7.7
8.6
4.1
21.2
9.7
10.4
11.1
225.0
16.7
12.2
5.2
9.8
7.7
Total Third Quarter Sales
10,559
10,597
11,639
10.2
9.8
Statutory
Increase
(%)
Woolworths Chief Executive Officer, Michael Luscombe, today announced third quarter sales growth
of 10.2% from continuing operations. “We are pleased to report another strong sales result for each of
our businesses. Our businesses are well positioned and Woolworths continues to gain value from the
solid platform created by continuing to focus on lower costs, lower prices and on-going management
emphasis on range, quality, value and convenience for the customer, right across the organisation” he
said.
(1)
2007 statutory sales do not include Easter. 2008 statutory sales do include Easter. 2007 sales have been adjusted to
reflect the impact of Easter.
AUSTRALIAN FOOD AND LIQUOR
Australian Food and Liquor sales for the quarter were $7.6 billion, representing an increase of
9.3% (8.6% Easter adjusted). Comparable store sales in Food and Liquor for the third quarter
increased by 7.3% (6.7% Easter adjusted, Q2: 6.0%), as we cycle a similarly strong comparable
sales growth in the prior year of 6.6%.
Inflation for the quarter was approximately 4.5%, an increase from the 2.0% experienced in the
first half as we continue to see increased price pressure on certain products and the ceasing of
price deflation in produce.
“The strong momentum in the business has continued in the third quarter with further gains in
market share. Our accelerated refurbishment program is progressing well with improvements in
both sales and gross margin in the stores that we have completed.” said Naum Onikul, Director
of Supermarkets.
We opened six supermarkets and six Dan Murphys stores during the quarter.
NEW ZEALAND SUPERMARKETS
New Zealand Supermarkets achieved sales of $1.1 billion for the third quarter. Comparable sales
for the quarter were 6.3% (6.2% Easter adjusted, Q2: 5.7%).
In New Zealand, overall food inflation was approximately 3.0%, (Q2: 3.0%) which is still below
the general food CPI and reflects the continued investment in lower prices.
“We have continued to make significant progress in reducing the price differential between our
business and the equivalent offerings from our main competitor. Importantly, the results are
apparent in our own price surveys and in our customer perception studies.” said Peter Smith,
Managing Director New Zealand Supermarkets.
Note: comparable sale % quoted based on NZD sales.
PETROL
Petrol sales for the third quarter, including Woolworths/Caltex Alliance sites, increased by 19.7%
(21.2% Easter adjusted) reflecting higher petrol prices. Petrol comparable sales (dollars)
increased 15.7% (17.1% Easter adjusted) during the quarter. Comparable volumes declined 2.3%
(1.0% decline Easter adjusted, Q2 1.3% decrease) reflecting lower demand due to higher petrol
prices.
During the quarter, one petrol canopy was closed taking total sites to 515, including 134 alliance
sites.
BIG W
BIG W sales grew by 13.1% (10.4% Easter adjusted) continuing the positive momentum for the first
half. Comparable sales in the third quarter were 6.2% (3.8% Easter adjusted, Q2: 3.6%).
“This is a pleasing result and a credit to the efforts of the BIG W team in a tighter economic
environment. We continue to improve the shopping experience for our customers whilst maintaining
our everyday low price position.” said Greg Foran, General Manager BIG W.
Three new stores opened during the quarter taking total stores in the division to 151.
CONSUMER ELECTRONICS
Total Consumer Electronics sales grew by 13.7% (16.7% Easter adjusted) during the third quarter.
Consumer Electronics (in Australia and New Zealand) has continued to enjoy solid growth, with third
quarter sales increasing 8.2% (11.1% Easter adjusted). Comparable store sales for the third quarter
increased by 3.3% normalised for movements in exchange rates (2.8% unadjusted). (5.0% Easter
adjusted normalised for movements in exchange rates, Q2: 5.3%)
During the quarter we opened four new stores taking total stores to 416.
Consumer Electronics in India, our business venture with TATA now services 17 retail stores
operating under the Croma brand achieved sales of $26 million for the quarter.
HOTELS
Hotel sales in the third quarter increased by 4.4% (5.2% Easter adjusted) to $263 million. Overall
comparable sales increased by 0.2% (1.0% Easter adjusted) in the quarter which was a modest
performance, reflecting the impact of smoking bans resulting in more modest gaming comparable
sales for the quarter (Q3: 0.9%, Q2: 3.1%).
We continue to remain cautious on the extent of the impact of smoking bans over the remainder of the
financial year.
No additional properties were added to the portfolio in the third quarter with total hotels remaining at
271.
Note: Full smoking bans were introduced into South Australia from 31 October 2007, NSW and Victoria from 1 July 2007.
Full smoking bans were previously in force in Queensland, Western Australia and Tasmania..
SALES OUTLOOK FOR THE FULL YEAR
“Each of our businesses has positive momentum and whilst we are cautious about consumer
confidence, we continue to expect sales from continuing operations for the full year to grow in the
region of 8% to 10%.” said Mr Luscombe.
For further information contact:
Clare Buchanan
Tom Pockett (Finance Director)
(02) 8885 1032 – Media
(02) 8885 1105 – Investors/Analysts
Appendix 1
Proforma(1)
Increase
(%)
2007
Statutory
13 weeks
2007
Proforma(1)
13 weeks
2008
Statutory
13 weeks
Third Quarter by Division ($millions)
Australian Food and Liquor
New Zealand Supermarkets
Petrol
Supermarket Division
BIG W
Consumer Electronics – Aust / NZ
Consumer Electronics – India
Consumer Electronics – Total
General Merchandise Division
Hotels
Continuing Operations
Wholesale Division
6,981
1,022
1,175
9,178
777
305
8
313
1,090
252
10,520
39
7,023
1,023
1,161
9,207
796
297
8
305
1,101
250
10,558
39
7,627
1,065
1,407
10,099
879
330
26
356
1,235
263
11,597
42
9.3
4.2
19.7
10.0
13.1
8.2
225.0
13.7
13.3
4.4
10.2
7.7
8.6
4.1
21.2
9.7
10.4
11.1
225.0
16.7
12.2
5.2
9.8
7.7
Total Third Quarter Sales
10,559
10,597
11,639
10.2
9.8
2007
Statutory
40 weeks
2007
Proforma(1)
40 weeks
2008
Statutory
40 weeks
Year to Date by Division ($millions)
Australian Food and Liquor
New Zealand Supermarkets
Petrol
Supermarket Division
BIG W
Consumer Electronics – Aust / NZ
Consumer Electronics – India
Consumer Electronics – Total
General Merchandise Division
Hotels
Continuing Operations
Wholesale Division
Total Year to Date Sales
21,321
3,011
3,685
28,017
2,711
1,003
13
1,016
3,727
792
32,536
115
32,651
21,363
3,012
3,671
28,046
2,730
995
13
1,008
3,738
790
32,574
115
32,689
23,122
3,223
4,078
30,423
3,066
1,099
72
1,171
4,237
849
35,509
122
35,631
8.4
7.0
10.7
8.6
13.1
9.6
453.8
15.3
13.7
7.2
9.1
6.1
9.1
8.2
7.0
11.1
8.5
12.3
10.5
453.8
16.2
13.3
7.5
9.0
6.1
9.0
Period ($ millions)
14 weeks ended 30 September 2007
13 weeks ended 30 December 2007
13 weeks ended 30 March 2008
10,743
11,349
10,559
10,743
11,349
10,597
11.696
12,296
11,639
8.9
8.3
10.2
8.9
8.3
9.8
Total Year to Date Sales (40 weeks)
32,651
32,689
35,631
9.1
9.0
Statutory
Increase
(%)
Statutory
Increase
(%)
Proforma(1)
Increase
(%)
(1) 2007 statutory sales do not include Easter. 2008 statutory sales do include Easter. 2007 sales have been adjusted
to reflect the impact of Easter.